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Thursday, March 1, 2012

Briefing on Rwanda&apos;s higher education financing

Briefing on Rwanda's higher education financing

In June of 2010, the cabinet took a decision to phase out government
financing public higher Learning Institutions (HLIs) through student loans and
subsidies.

It was decided that future financing would be limited to developing,
enhancing and maintaining infrastructure at HLIs; to continue offering loans to
the neediest students identified through means-testing; and to fund only those
students who study programs in priority areas that support the government
development agenda.

This policy shift will start with gradually eliminating the subsidy of RW.
250, 000 per student per year or Rw. 25, 000 per month for living expenses.

The core components of the new orientation in Higher Education Financing
include:

Only the neediest students, as determined by means-testing, will be eligible
for student loans.

Only students studying subjects that support the country’s development
priorities in capacity building will be eligible for funding.

Subsidies for living expenses will gradually be eliminated.A formula
elaborating the cost of higher education will disseminated to the public showing
that a student loan includes: tuition, fees (lab, library, equipment etc.).

Only the subsidy for living expenses subsidy is being considered for
elimination at this time. It should be noted that while the government through
SFAR gives RWF. 250, 000 directly to the student, it sends RW 1, 200, 000 to the
institution to cover the cost of tuition and other fees for each student.

What the student receives for living expenses (RW 250, 000) is about 20% of
the total cost per student that the government pays and will continue to pay for
each student. The 20% is paid in addition to the 1.2 million Rw paid directly to
the institution.

In order to continue assisting students, SFAR has established the following
procedures:

Collaborate with other governmental institutions like Rwanda Revenue
Authority (RRA), to develop an effective mechanism for collecting outstanding
balances due to SFAR.

These balances currently amount to RW 65, 000, 000, 000 (65 billion
RW);Establish a database of individuals who owe money to SFAR; Use the
collected funds to establish a revolving fund to finance students;Establish
eligibility criteria for accessing eligibility for student loans. Such criteria
will include the following:

The program a student is pursuingNeed, as established by means testing,
including consideration of what the student was able to pay in secondary
schoolGrades attained in secondary schoolMaintaining satisfactory
academic progress (SAP) as a condition for maintaining eligibility.

HIHER LEARNING INSITUTIONS (HLI) IN RWANDA

Public1. HIGHER INSTITUTE OF AGRICULTURE AND ANIMAL
HUSBANDRY (ISAE)2. UMUTARA POLYTECHNIC (UP)3. INSTITUTE OF LEGAL
PRACTICE AND DEVELOPMENT (ILPD)4. BYUMBA SCHOOL OF NURSING & MIDWIFERY
(BSNM)5. KAVUMU COLLEGE OF EDUCATION (KACE)6. KIGALI HEALTH INSTITUTE
(KHI)7. RUKARA COLLEGE OF EDUCATION (RCE)8. KIGALI INSTITUTE OF EDUCTION
(KIE)9. KIBUNGO SCHOOL OF NURSING AND MIDWIFERY (KSNM)10. KICUKIRO
COLLEGE OF TECHNOLOGY (KCT)11. NYAGATARE SCHOOL OF NURSING & MIDWIFERY
(NSNM)12. KIGALI INSTITUTE OF SCIENCE AND TECHNONOLGY (KIST)13. TUMBA
COLLEGE OF TECHNOLOGY (TCT)14. NATIONAL UNIVERSITY OF RWANDA (NUR)15.
SCHOOL OF FINANCE AND BANKING (SFB)16. RWAMAGANA SCHOOL OF NURSING AND
MIDWIFERY (RSNM)17. KABGAYI SCHOOL OF NURSING AND MIDWIFERY (KSNM)